By Bharat Gautam

(Reuters) – Gold rose Friday after worrying U.S. data rekindled some investor interest. However, it was expected to see its largest monthly decline since September due to bets on aggressive Federal Reserve interest rate increases.

The price of an ounce was 0.3% higher at $1899.00, according to 0247 GMT. But, this month, has lost approximately 2%. The U.S. was up 0.6% to $1,902.10.

According to DailyFX currency strategist Ilya Spivak: “The disappointing U.S. GDP figure could put some pressure on the Fed not tighten as aggressively as it had hinted.”

The dollar has fallen a bit because of this. Spivak said that he didn’t think these moves would continue.

Fed officials are aligned on plans to increase the rate of interest rates this year, but they remain divided over the decision that will determine whether the economy is in recession.

The opportunity cost to hold zero-yield bullion increases when there are higher short-term U.S. rates of interest and yields.

The dollar has strengthened and gold prices are set to see the largest percentage fall in monthly price since September 2021.

The stronger dollar means greenback-priced golden is less desirable for currency holders. In the last session, the dollar held steady at a high of 20 years against its rivals. [USD/]

“The U.S. Dollar, also known as the freight train, is going to have to slow down sometime soon,” Matt Simpson, City Index’s senior market analyst, said. That could be good news for gold, Matt Simpson from City Index, a trading company’s senior market analyst said in a note.

Spot gold rose 0.1%, to $23.16/ounce. Platinum fell 0.5%, to $915.19. Palladium rose 0.5%, to $2.243.74. There were no monthly falls.